Tax Free Childcare: understanding the barriers to sign-up in 2021
Research to explore the barriers to take-up of Tax-Free Childcare, understand the extent to which these barriers are interrelated and identify any changes since the initial wave.
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HM Revenue and Customs (HMRC) commissioned research agency Yonder to explore the barriers to take-up of Tax-Free Childcare, understand the extent to which these barriers are interrelated and identify any changes since the initial wave carried out in 2019.
The approach consisted of a combination of phone interviews and on-line interviews with parents who were eligible for Tax-Free Childcare but had not yet applied for the scheme. A total of 897 interviews were achieved, made up of 610 online interviews and 287 phone interviews.
The research found that the top barriers to signing up to Tax-Free Childcare were:
- eligible parents not being aware of the criteria and thinking they earned too much to apply
- eligible parents saying their needs were already being met through childcare vouchers
The results of the research came up with recommendations for improving information about the sign-up process and increasing knowledge about eligibility requirements.